Oil Majors Cut Low-Carbon Spending to Boost Hydrocarbon Investments for Energy Security

Global oil majors are slashing their low-carbon investments to the lowest level since 2019, dropping to about $8.3 billion in 2025 from $24 billion in 2024, according to a report from Equirus Securities. Companies like Equinor and BP are redirecting funds into oil and gas projects, citing geopolitical conflicts and energy security concerns. Equinor approved a NOK 40 billion investment to expand the Troll gas field, which supplies nearly 30% of Europe's gas, while BP targets over one million barrels per day from its US portfolio by 2030. The shift marks the first time spending on low-carbon initiatives has declined while hydrocarbon investments rose. The report notes a global move toward 'energy addition' rather than 'energy substitution,' driven by rising electricity demand from AI, data centers, and industrial growth. LNG, nuclear, and conventional fuels are being added alongside renewables, meaning hydrocarbons will stay in the energy mix longer than previously expected, even as renewable deployment continues.